Fed Money Tapped in Highway Bill as Banks Get Dividend Break
- Central bank would lose $19 billion from its surplus account
- Banks’ dividend payout would be tied to 10-Year Treasuries
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The banks’ partial win on dividends is the Federal Reserve’s loss.
U.S. House and Senate leaders reached agreement Tuesday on legislation to help pay for the nation’s highways with surplus funds from the Federal Reserve and an annual dividend banks get for owning shares of Fed regional banks, according to a copy of the bill text obtained by Bloomberg News. The dividend reduction wouldn’t be as much as originally proposed.